Delvin Corporation, Which Has Only One Product, Has Provided the Following

question 6

Multiple Choice

Delvin Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the total period cost for the month under variable costing?

• A)$42,000
• B)$49,200
• C)$35,700
• D)$7,200

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Definitions:

Autonomous Consumption

The level of consumption expenditure that occurs when income is zero, indicating the basic level of consumption that is necessary for survival.

Disposable Income

Monetary allocations for households after income taxes, intended for spending and saving.

Consumption

The total value of goods and services consumed by households and government within a country.

Disposable Income

The budget left for household savings and spending after the deduction of income taxes.